Locking Bias

Ben Bernanke is testifying in front of the Senate Banking Committee, but investors are not expecting anything much different from the last few speeches.  Stocks have pushed to record highs after Initial Jobless Claims came in lower than expected, and the Philly Fed Index was well above estimates.  mortgage bonds are being pressured lower, and this is right at the top of the trading channel of the dominant trend.  Interest rates will not make any significant move lower if this channel cannot be broken.  There are no economic reports tomorrow, and therefore no potential catalyst to push bonds higher at this time.  We will suggest a locking bias today.